It's going to be interesting indeed. I'm hoping that I play the markets a bit better than I have in 2011. 2011 was the first year I've ever managed my own money in stocks, and it wasn't a good year to start Crazy volatility caused by all this debt stuff as well as the political unrest all over the place.

I'd guess that the Euro will survive, but Greece may be out. Not sure what to think about Italy.

I'm interested to see what happens in Canada as well. Household and government debt levels are so high. Everyone seems ok with taking on debt. Where is all this debt coming from? Seems like everyone owes, so if everything was balanced out would the result be negative? Eg. money would have to be printed to cancel out all the debts? or is someone actually lending all this money out there? I'm not educated well enough on the matter to know.

The debt has a few sources to whom it is owed. For example in some cases to foreign investors, and foreign governments, and in some cases to banks who essentially created the money out of thin air by loaning it out.
The debt will either have to be repaid, through higher taxes or the fatal act of printing money (likely in Greece), or the debt will have to be defaulted on -also a strong possibility with bad implications. That will likely mean deflation.

Funny, right now CBC is showing some documentary about the end of the world in 2012.